These two biotech giants are racing to find a cure for COVID-19. Which one is the better buy?
While coronavirus cases in other developed countries are flattening, the U.S. has not been so fortunate. As of July 24, the number of coronavirus cases in the U.S. has reached a new record, with more than 78,000 Americans infected. Meanwhile, approximately 1,485 Americans are dying each day of COVID-19.
There is light at the end of the tunnel, however. Currently, two of the largest biotech companies in the world, BioNTech (NASDAQ:BNTX)and GlaxoSmithKline (NYSE:GSK), are part of the race for a COVID-19 cure. Let’s take a look at which of the two companies is the better buy.
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Here’s the progress from BioNTech
Together with Pfizer (NYSE:PFE), BioNTech is developing an experimental RNA vaccine for COVID-19 called BNT162b1. In its phase 1 clinical trials, 24 out of 24 participants who received BNT162b1 developed antibodies that neutralize SARS-CoV-2. Also, 95% of patients who received the vaccine developed T-cell responses, meaning immune cells that potentially grant immunity to the deadly virus for several years. The vaccine was also well-tolerated, with no serious adverse events reported.
Currently, the vaccine is in phase 2/3 clinical trials. If it’s successful, Pfizer and BioNTech would seek approval with the U.S. Food and Drug Administration (FDA) in October. But demand for its prototype has already gone wild. On July 22, the U.S. government secured 100 million doses of BioNTech’s vaccine, with a potential total order of 500 million doses. At $19.50 per dose, that could translate to about $2 billion to $10 billion in revenue for the two companies over the next year. Investors’ expectations for BioNTech have run high, with the stock returning 147% year-to-date.
Vaccines aside, BioNTech also has a vibrant oncology portfolio, with 11 candidates in development